False Claims Act & Qui Tam Matters

/Overview

To mitigate FCA exposure, our team of former prosecutors, including from DOJ’s Civil Fraud Section and Criminal Division, conducts internal investigations and counsels you on reinforcing compliance measures and remedial programs.

When pre-litigation resolution proves undesirable, we have a record of winning motions to dismiss, conducting targeted discovery in support of successful motions for summary judgment, and preparing cases for trial. At each stage, we identify opportunities for relief from unmeritorious claims. Our team also presents to DOJ’s Civil Fraud Section on Granston dismissal requests.

We navigate the grand jury process, government proffer sessions, and, if necessary, indicted matters. We regularly negotiate with HHS-OIG and other Inspectors General, and have successfully resolved FCA matters without the implementation of a CIA.

/Representative experience

• Provide guidance on FCA matters involving allegations of defective pricing, faulty contract performance, improper reporting, overcharging, kickbacks, and fraudulent Medicare and Medicaid billing
• Secured dismissal of a complaint in a long-running FCA case in federal court. The government’s FCA investigation resulted in a declination decision, which was a significant positive result for our client, a manufacturer. The relator physicians’ remaining claims were narrowly defined to alleged manufacturing defects as to one particular product. Contending that the relators included confidential information that they shared with their expert in filing their second amended complaint, we prevailed on our motion to strike allegations related to the expert from the suit and, consequently, to dismiss the complaint entirely. (Affirmed on appeal.)
• Defended contractor accused of fraud in construction of runways and taxiways at airports in California and Colorado; represented contractor in qui tam litigation, contract claims, and government investigations
• National counsel in the ongoing defense of a national telecommunications company for various state FCA charges (MA, RI, PA, DC, MN, IA, NC, AL, GA, IL)
• Successfully defended a Fortune 75 company against alleged bid rigging and false claims allegations. The risk assessment of potential damages to this multinational company could have run well into the billions of dollars had a prosecution and debarment occurred. The case was successfully resolved with no admission of liability.
• Represented an education provider against claims that it violated FCA. The claims allege that client violated incentive compensation restrictions and certain reporting allegations. NP succeeded in limiting discovery in this matter to a two-year period, and defeated other efforts by the relators to expand the scope and duration of their claims.
• Defended a supermarket chain in a case brought by a qui tam plaintiff alleging that it violated a state FCA and committed fraud by failing to collect state sales tax on various items sold in its stores. The court granted our motion to dismiss.
• Guiding ambulatory surgery centers and pain management clinics through FCA investigation by United States Attorney’s Office concerning Medicare coverage for electro-acupuncture devices (including P-STIM® and NeuroStim System® devices)
• Representation of a major pharmaceutical manufacturer in a federal investigation involving allegations that the company set an inflated “average wholesale price” for certain products and then promoted those products to physicians based on the “spread” between the AWP-based Medicare and Medicaid reimbursement, and the actual price paid by physicians. The investigation and two related FCA cases were resolved through a civil settlement with no criminal charges against the company. Our attorneys also represented the company in related multidistrict litigation and state court actions brought by various state attorneys general and third-party payors
• Representation of a prominent academic medical center in an FCA action alleging fraud in connection with Medicare and Medicaid billing and reporting related to federally funded (NIH/NCI) clinical research